Levels to watch: FTSE 100, DAX and Dow

Indices have started 2018 in the red, with European markets in particular under pressure again.

FTSE 100 drops back from all-time high

Having hit new records at the end of 2017, the FTSE 100 is in pause mode as 2018 gets underway. The first area of support to watch for is 7600, and then down to 7550.

A continuation of the rally will require a move above the record high of 7705. The breakout to new highs should be seen as a validation of the strength of the move, with dip buyers likely to step in, to maintain upward momentum.

DAX takes an early tumble

Gains overnight have disappeared, with DAX testing and moving below the 12,844 level. The next area to watch is 12,678, with the 200-day simple moving average (SMA) at 12,707 also in view, for the first time since September.

Below 12,678, both12,387 and then 12,310 come into play. Meanwhile, a recovery back above 12,844 would see the index challenge 12,954, 13,095 and then 13,211.

Dow drifts into the New Year

While Dow Jones did succeed in eking out a new all-time high at the end of 2017, it has essentially gone sideways since mid-December.

Above 24,899, the index is back in all-time high territory. The first area to watch for support is 24, and then down to 24,083. 

This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.  Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. 

CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.

Find articles by writer

All trading involves risk and losses can exceed deposits. Trading CFDs may not be suitable for everyone so please ensure that you fully understand the risks involved. All trading involves risk and losses can exceed deposits.